Parent of Saks, Neiman Marcus gets nod for Chapter 11 exit, reorg plan in tough US luxury retail business

June 5, 2026

Saks Fifth Avenue's holiday window display in Manhattan on Dec. 16, 2025. Image credit: Leonard Zhukovsky, Shutterstock

The owner of Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman and Saks Off Fifth has received approval for its plan to reorganize from the U.S. Bankruptcy Court for the Southern District of Texas.

Confirmation of the plan – which gained a nod from most Saks Global Enterprises’ creditors – paves the way for the leading U.S. luxury retailer to exit chapter 11 bankruptcy in the coming weeks with a firmer financial footing. The reprieve will also come as a relief to luxury brands, both big and small, relying on Saks Global’s stores for wholesale revenue.

"The broad-based support we have received from our capital partners, brand partners and other key stakeholders reflects confidence in our future," said Geoffroy van Raemdonck, CEO of Saks Global, in a statement.

Store lure
Saks Global, along with rivals Nordstrom and Bloomingdale’s, are the leading luxury department store chains in the United States.

Of the three, Saks has struggled the most, burdened by historic debt that ballooned with the acquisition of Neiman Marcus, a storied luxury retailer that has had its own run with bankruptcy.

The country’s luxury department stores face ongoing threat from evolving customer shopping behavior, growth of ecommerce and the direct-to-consumer push by luxury brands who are aggressively opening their own monobrand stores to control the last-mile experience.

These luxury brands are also wholesale customers of Saks, Nordstrom and Bloomingdale’s – primarily justifying department stores’ role as the gateway for fashion and leather goods labels.

After emerging from Chapter 11, Saks Global’s debt will be reduced by nearly 75 percent.

In nabbing this second chance, the company will have the liquidity necessary to support its operations and invest in growing.

Going forward, the Saks Global plan calls for a focus on strong full-price selling and away from off-price.

Equally ambitious is the goal to generate $9 billion in total gross merchandise value and double-digit adjusted EBITDA by fiscal year 2030.

Mr. Raemdonck has his work cut out as luxury department stores continue to reinvent themselves.

The executive is former CEO of Neiman Marcus Group who led the sale to Saks Global and then exited only to be installed as the leader for the combined retail entity.

Retail detail
In the past five months, Saks Global claims it has firmed up its financial foundation and strived to restore relationships with vendor luxury brands who complained of delayed payments.

The New York-based company has worked to improve its integrated retail model with a focus on distinct ecommerce platforms and remote-selling services. It is also downsizing its store footprint in favor of top performers in markets with a high concentration of luxury customers.

Perhaps most important is the reinforced focus on Saks Global’s core luxury business.

The company’s move away from off-price retail to prioritize luxury and full-price selling, as well as streamlining the leadership ranks, is designed to reflect a kind of back-to-basics mindset.

SAKS GLOBAL CLAIMS go-forward store sales continue to show steady improvement, reflecting stronger customer engagement as a result of increased inventory – a turnaround to applaud if it holds up.

Growth is never fully achieved only by cost-cutting. Revenue generation and smart marketing to stoke desire are key to earning customer business and enduring loyalty.

How innovative will Saks Global get before market circumstances tempt a return to bad habits, particularly the addiction to deep discounting?

The money person at the retailer is optimistic.

"With significantly reduced debt on the company's balance sheet at emergence and having already achieved substantial cost savings through the optimization of our footprint, operations and organization, our business is well positioned for future success,” said Brandy Richardson, chief financial officer of Saks Global, in a statement.

Share your thoughts. Click here

Parent of Saks, Neiman Marcus gets nod for Chapter 11 exit, reorg plan in tough US luxury retail business

Parent of Saks, Neiman Marcus gets nod for Chapter 11 exit, reorg plan in tough US luxury retail business

US consumers building summer vacations around experiences over destinations

Human-led hospitality – critical driver of workplace performance in every sector – being overlooked: report

Gstaad tops list of most expensive holiday property markets in Europe’s Alpine region

Africa’s real estate landscape: market rewarding precision over scale

French luxury conglomerate Kering releases 10-year global environmental report outlining company progress, tasks ahead

How AI shopping can quietly erode brand loyalty – and what it means for luxury

Family offices become de facto investment mode for ultra-wealthy: report

AI reshaping jobs faster than firms reshaping work: report

Hotels move from search-and-scroll to ask-and-book in nod to growing AI influence: report